throughout the board on oil service stock. this is the best to own, and getting it on sale. >> joey? >> first, yahoo! still has 75% of the buy back to go. that the reason is goes well. secondly, take a look at hibbett. >> southern copper. j.p. morgan got approval for copper etf. it is one game i'm playing instead of cat. >> johnson&johnson is within points of making a ten-year high. i think the turn around is year. stock is underowned. i love the 3.5% dividend and i like the fact that technically it is moving higher. >> this means hurry up. we will teach you that next time. >> power starts right now. >> halftime is over. "power lunch" and the second half of the trading day starts right now. thank you very much, scott. stocks rallying on optimism. stalemate on the fiscal cliff may finally be breaking.

house speaker boehner saying he may be open to higher tax rates on millionaires. the latest on the negotiations this hour. apple downgraded on iphone 5 fears. but what fears? sales of the phones soaring in china over the weekend. 2 million of them sold in the first three days of its launch there. so are fears about apple overblown? president obama says he will use whatever power he has to prevent another massacre like the one in newtown, connecticut. what can be done, if politics is the art of the possible? where does the possible reside in america? we talk solutions today on "power lunch." my partner, sue herera, sue? >> let's look at where major averages sit right now. just a second ago, we were up 80 point on the dow. we are close to the highs of this session so far. nasdaq composite is up 29 on the trading session and s&p 45u7b is up 13. it is that optimism over the

fiscal cliff which increased over the weekend after house speaker boehner edged ever closer to president obama's position. indeed, the speaker met with the president at the white house this morning. eamon javers is at the white house. eamon? >> previous meetings between the president and speaker had been telegraphed a little bit. this one was not today. this is an interesting development but a grim-faced speaker bainer who arrived back up on capitol hill not talking to reporters. we don't yet have a sense of what was in the meeting, what the substance of it was. what we do know is what speaker boehner offered on friday, in a phone call to the president. he offered to raise tax rates o those above $1 million in income and offered $1 trillion in new tax revenue and offered to extend the debt ceiling for sub stan recall spending cuts and reforms on the spending side. they want a dollar for dollar equivalence there. the president of the united

states said he want it raise tax rates for those over $250,000 in income and he wants $1.4 trillion in new tax revenue and he with like to have a nearly permanent extension of the debt ceiling, something that congress has said they are not willing to give him. and speaker laughed off last week. we are waiting it see now just in the next couple of minutes, white house press secretary jay carney will brief reporters. we will see how much they can get out of the white house press secretary but so far both sides have been sticking to tight scripts in terms of talking points after the meetings and we expect more of the same today. guys, back to you. >> eamon, quick follow-up here. i understand the enthusiasm or encouraging signs coming out of washington. but are these two sides really that much closer together? they seem, in some ways, to be talking past one another. >> right. what we don't know is what happened in this meeting today. that could be a sign of some progress. obviously the speaker made a new offer.

now we will wait and see what the president will match that with. the political dynamics here are that the speaker needs to go back it republican colleagues on capitol hill and tell him look what i got the president to agree to that we didn't think he would agree to. what is that piece of this? it has to be on the spending side somewhere. that's where this deal will get made if it get made. obviously this level of activity, meetings, phone calls, activity over the weekend, indicates that something is happening. we are moving toward the goal line here. goal being a deal. but there's no question, there's no guarantee of course we will get there all the way. >> it is very interesting, eamon, speaker boehner's position was 800 billion in revenue increases. he moved up to about a trillion. the president began at 1.6 trillion. he moved down to 1.4. it looks like they are converging on something in the neighborhood of 1.2. >> that seems like the absolute sweet spot. we will see if that where they go. but the speaker is moving on something he said he wouldn't

move on, which is increasing rates. >> thank you very much. >> yeah. >> where do we stand on the possibility of a fiscal cliff deal? let's look at patented meter and we have it at about 75% chance. that's what we say at this moment. sue? >> and that is why the dow jones industrial average is up. bob joins me, they are really hoping that they can get in done and get it done before christmas. this mark set dieing to get a deal. >> it is very something, do nothing is off the table. that's a substantial move. did anything happen? yeah, it did. you can see in the market, stocks that haven't not much recently are doing something. look at that, 3% moves on some big names. home builders are up nicely. they have been largely side ways since earnings came out. 5% on all the home builders. the treasury many etfs, slowly

moving down, maybe deflating a little bit. we will talk about that in the last half hour. i get asked a lot about why is hewlitt packard down so much today? there is a somewhat negative article in the guardian, a london newspaper, questioning meg whitman's leadership, and that's probably it there. that's the only thing i have been able to find. >> ty, back to you. >> using power whatever this office holds to safeguard the nationes a children following the school massacre in newtown, connecticut. raising the prospect that he will good after policy changes to stop gun violence. hampton pearson joins us with the latest. hampton? >> the president spoke eloquently and harshly following the last two. recent example, on the sale of semiautomatic weapons like those used in virginia tech shootings,

candidates saying quote i don't need of any self respecting hunter that needs 19 rounds of anything. fast forward january 2011 for victims of arizona tragedy and congressman gabby giffords who survived, the president saying, we cannot and will not be passive in the face of such violence. last july, in a speech to the national urban league, the president was on fire in talking about assault weapons. >>. but i also believe that lot of gun owners would believe that ak-47s belong in the hands of soldiers, not criminals. they belong on the battlefield of war, not the streets of our cities. i believe the majority of gun owners would agree we should do everything possible to prevent criminals and fugitives from purchasing weapons. >> three weeks later, six people were killed and four others injured at a sikh temple in wisconsin. the president expresses outrage

and makes vague reference to the need for change. we learned over the weekend the department of justice did create a set of recommendationes it beef up background checks after the giffords shooting but those recommendations went largely ignored. this time, it is not just the president saying, when the victims are innocent children, it's time to move from conversation it action. tyler? >> hampton pearson, thank you. to the markets now. apple dipping below $500 a share for the first time since february. in premarket trading, this after citi downgraded stock. the company did sell better than expected 2 million iphone 5s in china over the weekend. the best smart phone launch ever in that country. what will the future bring with apple? i'm here with spencer from wall street journal. spencer, people have been unloading apple over the past few months. is that selling pressure overdone? >> well, it looks like since

apple released this announcement saying they have sold over more than 200 million iphones in china, and it takes it down a new low for apple, it has rebounded. apple is entering a new relationship for its investors. the last few years it's been this amazing lovely marriage. both sides completely in love with each other. the last few quarters they are questioning tlir relationship. they are fearing, can the growth continue? can the innovation continue? this news release seems to take some fear out of those investors. >> people did have, and many still do, have a love affair with apple and its product. but no company can control the marketplace. not that apple is endeavoring to control it in a malicious kind of way, but people -- there's competition. >> sure, sure. and droid phones aren't bad and some of the tablets are pretty good and they are cheaper. >> yes.

competition against apple is still growing. apple had a huge innovation lead over its competitors that is shrinking. samsung has been taking on better products that have, you know, overtaken apple in the market share perspective in some ways. that is also a fear in the background and what you have to consider though, is that in china, apple does not have distribution with the largest phone carrier, china mobile. they have distribution with unicomm. it looks great but not as good as what it did in the u.s. that's one reason. >> very quickly, on apple map debacle, how damaging was that? that was a slip, a big slip for them. >> yes, i think it was. a little bit after turning point for the company because its leadership in software for wireless was unquestioned. for the first time, users were

saying, you screwed this up. >> you messed this up. >> yes. that sent a signal, they changed leadership. >> they had a reputation for doing everything right. this was an instance for where they did not. thank you. >> good to have you here. >> brian shablgtman. >> hard to talk about apple without talking about google. there are reports over the weekend this they are settling their search issue with the ftc. also interesting can comments about how they really believe that search with google will be more mobile than desktop on the year 2016. it is up $14.49. sue, to you. >> brian, thank you very much. we raise the question, is there a middle ground to be reached regarding gun control? we'll discuss that very subject with ron christie, former policy adviser to president bush. and national urban league ceo, mark. nancial obstacles military families face, we understand.

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in coming weeks, i'll use whatever power this office holds to engage my fellow citizens from law enforcement to mental health professionals to parent and educators. in an effort aimed at preventing more tragedies like this. because what choice do we have? we can't accept events like this as routine.

>> that was part of president obama's speech last night in newtown, connecticut. we questioned, how do you find middle ground in the gun control debate. joining us to talk about that is ceo of the national urban league and former mayor ever new orleans. he has written about this very subject as well as ron christie, former assistant to george w. bush. gentlemen, welcome. >> thank you. >> thank you. >> a very, very difficult time for the nation. and the president i think summed it up best. you know, it is not time for political debate about this. what we want to know is, how do we get the country to the middle ground on gun control? ron, lou do we do that? it is such a divided scan county on so many levels right now. is this the point that brings is together? >> i think it might be. we all recognize on the constitution, second amendment right to bear arms. but you reach a certain point.

high speed ammunition clips. bullets designed to kill people and not animals. you have to say to yourself, does the time come in our culture and society where we need to revisit this issue? i think we have to take a strong look at this. >> i agree with it. this is about children. it is about awful tragedies occurring inside homes of worship. kindergarten, movie theater, college campuses. in addition the streets of chicago, new orleans, each and everyday. it is time to recognize it is too many lives. too much tragedy. it is time for action. we have to turn the tears into action. >> ty? >> we are a nation of 311 million people and 200 million guns. if the country were to pass a law or even a constitutional

amendment tomorrow, because the second amendment is pretty absolute, it says the right to keep and bear arms shall not be abridged. what would it really do to gun violence in this country? >> i think tyler, if you look back at the 1994 assault weapons ban that was passed, if you look at very specific provisions, you can't have a gun with a pistol mount, can't have splg with a grenade launcher. there is an ability for people to bear arms but also very military and very specific weapons weren't designed for hunting. and i think that's where we should have a discussion. i'm very much in favor of the second amendment. but we look at this country as a society and we need to make sure that our culture is keeping up with where we are and i think we have a cultural problem as well. >> when the assault weapon ban expiring in 2004, seven killers have wielded, seven mass killers, have wielded military

style assault weapons. so i think there's evidence that focussing on things like military style assault weapons and a number of other related things, could in fact save lives. yes, it is about mental health. yes, it is about the culture but we've got to have the question about guns squarely in the middle of it. >> how does the president, then, push this forward? how he does take this terrible and horrific tragedy in connecticut that is still unfolding, and will unfold all this week and next? how does he -- i don't want to use the word leverage, but i think i have to use the word leverage, how does he push that forward? >> i think the legislative body needs to have the first crack at this. wine stein will be introducing legislation and i think we need the legislative process works its will. the nra, those that protect

children and strong mayors and police officers have the opportunity to weigh in and then i think the president should use his pulpit if you will to make sure that we have splg that is reasonable but addresses the senseless violence we have seen. >> i think is a time for the kind of courageous leadership that i know the president is up to. and i think there are times to listen to the people beyond the beltway. to listen to those families in connecticut, to listen to the families in connecticut, the mothers in atlanta on new orleans, the people at the sikh temple. >> in wisconsin. >> in wisconsin. i think there is a time to listen to the call outside the beltway and not to allow the conversation in the beltway to drown out the voices in the cities and small towns of america. >> todd? >> you know, gentlemen, i took my 7-year-old to the bus today and it took a little extra faith for me to put him on that bus

today as it did for every single parent in this country and every teacher, principal, school administrator, and there for the grace of god go i. where do we fail with respect to caring for and addressing the mental health issues that are raised in the case on friday and the case in aurora and so many of these other cases where individuals have gone off and have either listening to voices or tried to solve their own anger by taking it out on others? where did we fail? >> we still have to continue to destigma ties that mental health challenges afflict people who are normal and functional. we need to make sure that people are not hesitant, for

intervention and make sure that state and federal budget cuts don't affect many of the mental health services are available to those who can't afford it. but it is also about destigmatizing it. we have come some distance with that in the nation, but are far enough. >> ron, this is a time when we are talking about spending cuts and all of that is being negotiated this washington. >> your thoughts on that? >> no question. we need a mental health parody. we need it make sure that individuals get the help they need to state and local government. it is also a cultural issue in this country. look at violent video games be a violent messages from hollywood, i wonder how much reinforces this for the mentally that allow them to take a life. >> we had that same discussion in the newsroom this morning. >> some of the action flicks we all love, they encourage and

romanticize and create a highlight about violence. so we've got so much to do. but i think that it's -- hopefully in all this tragedy and for the parents suffering, this is a turning point. when you look at all of that to occur just in the last 12 months, it is shocking and this is not what this nation should be about. it is time to turn our tears into action. >> i will leave it on that optimistic note. thank you both very much for being down here with me. ty, back to you. >> gentlemen and sue, thank you. hedge fund manager squawking, talking about where the values lie, we we come back. stay with us. [ male announcer ] it's simple physics...

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with these interest rates, with this fed, of course it is cheap, but you still have the stuff in washington holding back everybody and everything. the question is, how much does it mean and what will it do when you're holding back people to the end of the year? because if it does blow up, the market will go down 2 or 3%. >> volatility. that was david tepper. he says stocks are cheap, all

things being equal, throughout washington. you think he's right? >> well, it is very tough to argue with david tepper. first of all, he has been on your channel earlier. i think about a year, year and a half ago. and certainly the market behaved well after that. and he's got a pretty good point that if the fed is your friend, it is tough not to be successful. i'm not quite sure how certain i am that there is that much of a protective net under us, however. and i would be a little cautious of that. but given his rate of return and his reputation, tough to argue with it. >> is that lack of a safety net, does that pertain to washington or pertain to europe or all of it? >> it pertains it a variety of things. first of all, ingenuity of u.s. corporations is outstanding. they got lean, mean and made

money. profit margins went it a record high. now they are under pressure. so i'm not sure if we can keep that same level of high level profit margins. i think have you wild cards in europe and certainly we are very reminiscent of the debt ceiling fiasco we saw last year. >> yes, yes. all right, thank you, arthur. dear friend. >> my pleasure. now to brian with the market flash. bri some. >> shares of aig up about 3%. their asian interest aia, basically going to get about 6 billion plus in terms of net on that deal so they will be out of that position. if you put into account, being out of their commit many to the u.s. government now putting cash in the bank to the tune of 6 to $6.5 billion, aig continues to look stronger every single day. up about 50% year to date. back to you. >> thank pup next half hour. bonds, are they in a bubble ready to burst?

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all right, rally on the

stock market. let's take a look at where gold prices are right now. share on epperson is tracking action for us. hi, sharon. >> hi, sue. a very subdued market here in the gold pits. we are looking at gold prices closing right now up just a dollar. right below. 1700 level. we haven't seen much activity in terms of net long positions and changes there, according to the traders report we got on friday. that lets you know traders say no one want it make big bets. before we know what happenes with the fiscal cliff as well as traders pointing out. until we know bhmore about dodd-frank as well. we are also looking at cupeling taking place between the dollar and gold as the dollar has come down, gold prices lost ground as well. that doesn't normally happen but it has happen el a few times this year, elsewhere in the meadows market, we are looking

at somewhat of a mixed market in the medals. one commodity has been copper. largely because j.p. morgan received approval for its physically backed copper atf. not mu it is something that was anticipated and we will watch carefully as it does launch. >> thank you very much. > now, dow jones up a little on the trading session and also off the bond market. >> yeah, 95 is the top on the market. today, do nothing, is not going to happen in the fiscal cliff. that is a real big break through that happened over the weekend. take a look at dow industrials. we have been moving basically side ways since noon eastern time and holding up rather well. volume up a bit on the light side. financials big leadership group.

some big doing well. bank of america and citigroup, these are important moves up. stocks, 2.5, 3%. and a dollar term if you look at what is going on. we have nice moves and some unusual stocks going against the grain here. jc penney, most retailers are on the upside, everyday low prices, are there sales every once in a a while? they can't decide what they are. and hul hewlitt packard after a negative article in a london newspaper. >> an a little bit of an air bubble. we will talk about with that when we come back. even seema mody, hi, seema? >> hi. we are up about a percent just off session highs. apple rebounding after midday

trade, about 0 .6%. sticking with smart phone space, research in motion beginning blackberry 10 beta testing with 120 customers. that's ahead of the official launch of january 30 of next year. look at two month chart, research in motion versus apple. you will see research in motion outperforming apple, up better than 70%. apple down about 20%. also watching shares of com pewware and offering to buy business from compuware. that's why we see shares of compuware. >> thank you, seema. we add tw o-year note auction. rick santelli is tracking it for pups h you. how did they do today, ricky?

>> well, 2-5-7 this week, holiday year-end issue, accelerated issue for debt, a $5 billion, five-year note. if we look at how 5s, 10s and 30s all traded, you can see how they are similar and varying around with time degreeses of time tests back it early november and last time you see the high yields. also keep in mind we have 174 ten tour. sound higher than it was. it is. but still a dozen basis point, closed last year at 187. if you look at 30-year and 291, it is a couple of basis point higher than last year. which means we have seen some steepening between 10s and 30s quickly on etf side. if you look at lqd we could see investment grade is almost as uninteresting to investors as the low yields and treasuries, until they flock there.

high yield etf still pulling its own weight. tyler, back to you. >> thank you so much. are we in a bond bubble? david tepper spoke to cnbc about it. running one of the most successful hedge funds and he is known in the industry for being a mover in the market. >> i have credit markets that are so -- i wouldn't say they are in double territory, but they are rich and spreads are at good levels right now. >> not a bubble, but rich. mr. shmith, welcome, good to hae you with us. >> thank you. >> do you temper with what mr. tepper said in any way? >> clearly interest rate pose the greatest risk. we look at credit markets and there are valuations that are stretched but there are still opportunities in the credit market. >> where are they in credit market? that's yes one.

and question two is where is the interest rate risk coming from if the fed, as it said last week, is going it keep rates low until unemployment gets down to 6.5%? are they going to keep buying $90 million worth of securities every month? >> the fed has engaged in unconventional monetary possibility. cha what it created is a low yield coupon environment. so small changes in the interest rate leads to big changes in dollar price. i think that is widely misunderstood in investors in the markets. long yields and long durations can have long intended for the fixed income investor. >> you said there is opportunity in the markets, finish your thought there. where specifically? if you don't see it in government securities, where would it be? >> well, it is in the credit markets.

where corporate balance streets are strong, margins are high. there are companies continuing to delever their balance sheets. this is also at a time when we see decreased share lever activity. the share is most important element of investing in a credit market. >> sue? >> so mr. smith, where specifically would you put money to work in terms of, i know you've given us a few i'dos, but for the average investor, something actionable for average investor. >> yeah, i think you know, great point. for the average investor, probably the most important decision around putting money to work and fixed income is the active versus passive discussion. the passive approach brings with it an enormous amount of interest rate risk where the active approach money moneyages for interest rate risk and focussing on security selection. to give the average invest over some advice, there are good risk adjustments available.

both investment grade and high yield. those have to be managed on a he is security basis. some are relevering and creating a higher risk for investors. >> what specifically can investment managers like yourself do if interest rates move or back up, even in those corporate credit markets? there is relatively little that they can do to blunt the effect of that, right? >> no, can you can manage the risk of fixed income by not owning longer duration securities or the curve. i think where we are concerned about rising interest rate we are moving maturity into the front end of the curve, focussing on carry and roll down securities that offer better risk adjusted returns. again, i think you mentioned this earlier. we have been calling for a bear market and fixed income yes it hasn't happened yet. there is a level of complacency

with the policy in place where interest rates are never going to go higher. they will, and the investors who are buying the long duration security will be affected the most. >> i guess you are right sometime. i don't mean to be flippant about that at all, mr. smith. but where do you see the interest rate risk imminently coming from? that's what perplexes me here. >> yeah, that's a great point. inflation risk declined. the fed created in artificial market in holding yields down. we have negative real yelds across the curve at ten years. biggest risk for bond market right now is if the market loses credibility in the federal reserve or central banks around the globe. it would ultimately cause repricing of interest rate risk. not just domestically but around the globe. >> all right. >> i think that risk is quite high right now. >> thank you for being with us.

>> you bet. >> we are looking at your trip adviser. after this stock is up about 71% year to date. of course wbt spin off from expedia. a pe of 33. it is getting pricey. but still going up. back to you. >> thank you very much. when we come back, a look inside the gun industry. sales after senseless tragedies. mary thompson will break down the numbers. "power lunch" is back in two.

shares of vivus on move today. a fat-fighting pill, symphony health solutions reporting a 75% jump for prescriptions in the weekending november 12th. there you see vivus up about 12% on the day. >> in today's yahoo! finance

poll, we asked john boehner extending rates for those earning less than $1 million. president obama wants to extend rates for those making less than $250,000. in your estimation, is $250,000 a year rich? 33% say yes, especially compared with the average u.s. family income. 42% say no. $250,000 doesn't go very far in today's economy and 25% say it depends on where you live. all right, let's see what is coming up on "street signs," 2:00 p.m. eastern time. hi, mandy. >> hi, guys. we will talk about the fiscal cliff from a different perspective. we talk about it day in, day out, ad nauseam. but how much is it really affecting the real american out there? and also american airlines get a leg up, after an upgrade they are kicking you know what recently. and kicking 06 a retail titans

face off. we have a fabulous panel of retail expert all lined up. plus our own courtney regan as to who wines this holiday season? wal-mart or target? a lot of things coming up at the top of the hour. >> thank you mandy. how much money is involved, what happens to sales after the senseless killings? mary thompson joins us with a look at the numberes. mary? >> tyler, guns are big profitable business in the u.s. companies two public trading gun firms in excess of 18%. recent sales gains of more than 40%. for consumers, if history is a guide, there is likely to be a short term spike for gun permit. it reportedly happened after shootings in aurora, colorado and phoenix, arizona. gun sales in the last few years, smith andes withon reporting sales of $2 billion. topping last year's sales of are $2.7 billion. some site popularity of sport

shooting but industry says there are two main reasons. one is concern of personal safety. two wsh concerns you won't be able to buy a gun. in short, people buy guns when they think they won't be able to buy guns. there is now an expired ban on assault rifles went into effect. warnings from nra, second term for president obama would bring near certainty of sweeping gun ban is fuelling sales. today shares of smith wesson and this could take sales to a 35% in gun sales this fiscal year. >> so tell me about background collection. i gather they are on the rise. >> right. the fbi saying it processed 16.8 million checks this year. november was the 30th month in a row correction increased, this time it a record of more than

$1.5 million. it doesn't always translate into sales but there is certainly a measure of the growing interest in owning guns here in the pus. >> thank you very much. is you, done to you. >> size matters, especially when it comes to owning a home, apparently. diana has a look at a new survey. hi, diana. >> hi, sue. first the mcmansions, then the 200 square foot apartment. now we are expanding fwen. but not entirely who were why you think. we will talk about that up next.

listen, you have a pretty good economy right now. you have an economy of tail winds instead of head winter. you have an economy that's probably going 2%, give or take. >> that was david tepper talking about the outlook for economy and housing. steve liesman sat down with jeffrey this morning to get his take on the state of the economy and where it might be headed in 2013.

joined by steve with fascinating highlight from that. >> thank you, sue. subdued inflation of 1.8%. was he important part lacquer's estimate it would take get to 6.5% o unemployment. you remember, lacquer desentd -- excuse me, what was that? dehe is noted from the meeting. explained this descent. >> it should be clear that this committee is straining. to provide as much stimulus as possible without endangering our price stability. my worry and the reason i descented on this and asset purchases, is that we seem to be test the very limits of that credibility. >> he would prefer -- he

upported the dropping of the calendar date but wanted unemployment and labor market to e described in much mor terms rather than quantitative terms. he also suggested that the to be not e needs just for the short term but long-term. charlotte the launchon commerce where we are here, he said cannot assumer spending on the 6% year on year. sign. sign, they are not confident enough in the future to carry long-term balances. sue? >> that is a mixed thing. back to under lacquer, steve, he was uncomfortable with the unemployment, pegging it to unemployment, i believe i heard this correctly in your interview, that people will become too fixated on that number and that number might not actually accurately reflect the underpinnings of the economy and the employment situation. is that correct?

>> that's absolutely correct. for example, the participation that would all and bring the unemployment rate down with it and that would not be a good sign. the other thing is, he doesn't misunderstand that the fed cannot affect long-term unemployment. it can nudge back to the long-term trend. he is afraid people misunderstand the powers of the fed. >> thank you. ty, over to you. >> in a cnbc exclusive, 84% of homeowners are not going to down sides size. in fact they want to upside. diana has details. >> builders were going smaller and cheaper and baby boomers were expected to lead this down sizing. now not so much. you hear the 84% saying they won't go smaller in their next

home. more than half of ma lineals, say they want their home to be larger, which is to accommodate a growing family. and that's not just kids, but parent where living together is more common. baby boomers, 28% said they wanted to down size. they want larger living spaces but forget the formality. they want family rooms, big kitchens and storage space. those findings butt heads. another survey asking architects what they are seeing. 59% say access to public transportation is what their clients want. up 47% a year ago. higher density developments are up by the american institute of architects. and aig's chief economy baker saying we are seeing more

interest in urban infill locations than in remote sexurbs. he says there is close proximity for retail. not so much for those depreciationing mcmansions still out there in the exurbs. we have plenty more of that on the blog. >> diana, i don't want it ask you question you don't have the answer to. but no surprise the 18 to 34s say they want a bigger house. surprising that baby boomers like myself, say 28% of them want to down size. what about people 55 and above? >> 55 and above, look one might look at people who are having a more active lifestyle. we think of baby boomers as very active. going to active adult community. not necessarily they want it move into smaller condos or smaller apartments my more. the older you get obviously you will move into the smaller but

we are looking that baby boom generation as fuelling the done size and according to polte homes, they say, no, the baby boomers want bigger homes, i guess it accommodate the active lifestyle. >> the one thing i would say, having owned a lot of older homes, diana, is that my next home is a new home so i don't have to worry about the raid ate yoer radiator not working in the middle of the night. >> and going green. energy efficiency is key now. >> thank you diana. we will have a final look at markets and wrap up this power of hour when we return.

welcome back it "power lunch." rates are up and so is lowes. a nice little hike up, a green slope there. i want it point out they are less than a dollar way way from a new high. l l-o-w up 3%. >> that's because my husband keeps going there. dow jones up 54 points.

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